{"id":355713,"date":"2018-02-12T17:00:40","date_gmt":"2018-02-13T00:00:40","guid":{"rendered":"https:\/\/www.creditrepair.com\/blog\/?p=355713"},"modified":"2022-03-31T18:14:56","modified_gmt":"2022-04-01T00:14:56","slug":"whats-the-rule-of-72-and-how-can-it-help-me-save","status":"publish","type":"post","link":"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/","title":{"rendered":"What\u2019s the Rule of 72 and How Can it Help Me Save?"},"content":{"rendered":"

\"investing<\/p>\n

If you\u2019re looking to get a handle on your personal finances, there are countless schools of thought regarding what you should and should not do. There are tricks for saving, guidelines for boosting your credit score<\/a>, and tricks and tips for getting the most out of your investments.<\/p>\n

When it comes to saving and investing, one popular method you\u2019ve likely heard of is \u201cThe Rule of 72.\u201d In a nutshell, the Rule of 72 is a shortcut to estimate the number of years it will take to double your money at a given annual rate of return. Using this rule, you divide the rate, expressed as a percentage, into 72, so:<\/p>\n

Years required to double investment = 72 \u00f7 compound annual interest rate<\/strong><\/p>\n

Note: A compound annual return of percentage should be plugged into the equation as a whole number, not a decimal, to yield an appropriate result (for example, 8 percent is figured into the equation as 8 instead of 0.08, to yield a result of 9 years (vs. 900).<\/p>\n

Investopedia<\/a> does a good job of breaking down this rule:<\/p>\n

The Rule of 72 is a useful shortcut since the equations related to compound interest are too complicated for most people to do without a calculator. For example, the equation to determine exactly how long it would take to double an investment that returns 8 percent annually would look like this:<\/p>\n

T = ln(2)\/ln(1.08)=9.006<\/p>\n

With the Rule of 72 in mind, it\u2019s easy to see how investing can be a quicker road to building up your savings than simply putting money into a no-interest or low-interest earning savings account. It\u2019s important to consider the potential fluctuations in the financial market, which can work for or against you depending on market conditions. Still, the Rule of 72 gives you a general average.<\/p>\n

The flipside of the rule<\/h2>\n

It\u2019s important to understand that the Rule of 72 can also be used to calculate the cost of interest on debt. Lenders and financial institutions including banks, credit card companies, and others may essentially use the Rule of 72 in the interest rates they charge you.<\/p>\n

For example, if you owed a credit card company $10,000, with an average interest rate of 18 percent, your debt would double to $20,000 in four years. In eight years, your debt would be $40,000.<\/p>\n

By understanding how the Rule of 72 works, you should be able to calculate exactly what you\u2019re getting out of your investments, as well as what you\u2019re getting yourself into before you open a new credit card or take out a new loan. It can also help you save by helping you set a goal and have a better understanding about the amount of time and investment it will take to get there.<\/p>\n

If you\u2019re looking for assistance in getting on a positive track to financial health or fixing your credit, contact CreditRepair.com. We offer a free personalized credit consultation<\/a> and a credit score evaluation<\/a>.<\/p>\n

Carry on the conversation on our social media platforms. Like and follow us on Facebook<\/a> and leave us a tweet on Twitter<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

If you\u2019re looking to get a handle on your personal finances, there are countless schools of thought regarding what you should and should not do. There are tricks for saving, guidelines for boosting your credit score, and tricks and tips for getting the most out of your investments. When it comes to saving and investing, […]<\/p>\n","protected":false},"author":35,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[41,180],"yoast_head":"\nWhat\u2019s the Rule of 72 and How Can it Help Me Save? - CreditRepair.com<\/title>\n<meta name=\"description\" content=\"There are tricks for saving, guidelines for boosting your credit score, and tricks and tips for getting the most out of your investments.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What\u2019s the Rule of 72 and How Can it Help Me Save?\" \/>\n<meta property=\"og:description\" content=\"There are tricks for saving, guidelines for boosting your credit score, and tricks and tips for getting the most out of your investments.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/\" \/>\n<meta property=\"og:site_name\" content=\"CreditRepair.com\" \/>\n<meta property=\"article:published_time\" content=\"2018-02-13T00:00:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-04-01T00:14:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/12\/save-money-get-out-of-debt.jpg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Josh Aston\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.creditrepair.com\/blog\/#website\",\"url\":\"https:\/\/www.creditrepair.com\/blog\/\",\"name\":\"CreditRepair.com\",\"description\":\"We are the credit repair experts\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.creditrepair.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/12\/save-money-get-out-of-debt.jpg\",\"contentUrl\":\"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/12\/save-money-get-out-of-debt.jpg\",\"width\":1000,\"height\":635},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/#webpage\",\"url\":\"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/\",\"name\":\"What\u2019s the Rule of 72 and How Can it Help Me Save? - CreditRepair.com\",\"isPartOf\":{\"@id\":\"https:\/\/www.creditrepair.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/#primaryimage\"},\"datePublished\":\"2018-02-13T00:00:40+00:00\",\"dateModified\":\"2022-04-01T00:14:56+00:00\",\"author\":{\"@id\":\"https:\/\/www.creditrepair.com\/blog\/#\/schema\/person\/9dac89a3bbc91d2de4fe289aed436078\"},\"description\":\"There are tricks for saving, guidelines for boosting your credit score, and tricks and tips for getting the most out of your investments.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.creditrepair.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What\u2019s the Rule of 72 and How Can it Help Me Save?\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.creditrepair.com\/blog\/#\/schema\/person\/9dac89a3bbc91d2de4fe289aed436078\",\"name\":\"Josh Aston\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.creditrepair.com\/blog\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/764309fa4c83eb0d078ade088c7037ff?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/764309fa4c83eb0d078ade088c7037ff?s=96&d=mm&r=g\",\"caption\":\"Josh Aston\"},\"description\":\"Josh uses his knowledge of marketing to leverage the fundamentals of new and emerging digital channels, focusing mainly on the relationship between businesses and consumers. Some of his specialties include on-line marketing, publisher management and credit repair.\",\"url\":\"https:\/\/www.creditrepair.com\/blog\/experts\/josh-aston\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"What\u2019s the Rule of 72 and How Can it Help Me Save? - CreditRepair.com","description":"There are tricks for saving, guidelines for boosting your credit score, and tricks and tips for getting the most out of your investments.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/","og_locale":"en_US","og_type":"article","og_title":"What\u2019s the Rule of 72 and How Can it Help Me Save?","og_description":"There are tricks for saving, guidelines for boosting your credit score, and tricks and tips for getting the most out of your investments.","og_url":"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/","og_site_name":"CreditRepair.com","article_published_time":"2018-02-13T00:00:40+00:00","article_modified_time":"2022-04-01T00:14:56+00:00","og_image":[{"url":"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/12\/save-money-get-out-of-debt.jpg"}],"twitter_card":"summary_large_image","twitter_misc":{"Written by":"Josh Aston","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/www.creditrepair.com\/blog\/#website","url":"https:\/\/www.creditrepair.com\/blog\/","name":"CreditRepair.com","description":"We are the credit repair experts","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.creditrepair.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","@id":"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/#primaryimage","inLanguage":"en-US","url":"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/12\/save-money-get-out-of-debt.jpg","contentUrl":"https:\/\/www.creditrepair.com\/blog\/wp-content\/uploads\/2014\/12\/save-money-get-out-of-debt.jpg","width":1000,"height":635},{"@type":"WebPage","@id":"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/#webpage","url":"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/","name":"What\u2019s the Rule of 72 and How Can it Help Me Save? - CreditRepair.com","isPartOf":{"@id":"https:\/\/www.creditrepair.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/#primaryimage"},"datePublished":"2018-02-13T00:00:40+00:00","dateModified":"2022-04-01T00:14:56+00:00","author":{"@id":"https:\/\/www.creditrepair.com\/blog\/#\/schema\/person\/9dac89a3bbc91d2de4fe289aed436078"},"description":"There are tricks for saving, guidelines for boosting your credit score, and tricks and tips for getting the most out of your investments.","breadcrumb":{"@id":"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.creditrepair.com\/blog\/savings-and-investments\/whats-the-rule-of-72-and-how-can-it-help-me-save\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.creditrepair.com\/blog\/"},{"@type":"ListItem","position":2,"name":"What\u2019s the Rule of 72 and How Can it Help Me Save?"}]},{"@type":"Person","@id":"https:\/\/www.creditrepair.com\/blog\/#\/schema\/person\/9dac89a3bbc91d2de4fe289aed436078","name":"Josh Aston","image":{"@type":"ImageObject","@id":"https:\/\/www.creditrepair.com\/blog\/#personlogo","inLanguage":"en-US","url":"https:\/\/secure.gravatar.com\/avatar\/764309fa4c83eb0d078ade088c7037ff?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/764309fa4c83eb0d078ade088c7037ff?s=96&d=mm&r=g","caption":"Josh Aston"},"description":"Josh uses his knowledge of marketing to leverage the fundamentals of new and emerging digital channels, focusing mainly on the relationship between businesses and consumers. Some of his specialties include on-line marketing, publisher management and credit repair.","url":"https:\/\/www.creditrepair.com\/blog\/experts\/josh-aston\/"}]}},"_links":{"self":[{"href":"https:\/\/www.creditrepair.com\/blog\/wp-json\/wp\/v2\/posts\/355713"}],"collection":[{"href":"https:\/\/www.creditrepair.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.creditrepair.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.creditrepair.com\/blog\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/www.creditrepair.com\/blog\/wp-json\/wp\/v2\/comments?post=355713"}],"version-history":[{"count":2,"href":"https:\/\/www.creditrepair.com\/blog\/wp-json\/wp\/v2\/posts\/355713\/revisions"}],"predecessor-version":[{"id":361722,"href":"https:\/\/www.creditrepair.com\/blog\/wp-json\/wp\/v2\/posts\/355713\/revisions\/361722"}],"wp:attachment":[{"href":"https:\/\/www.creditrepair.com\/blog\/wp-json\/wp\/v2\/media?parent=355713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.creditrepair.com\/blog\/wp-json\/wp\/v2\/categories?post=355713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.creditrepair.com\/blog\/wp-json\/wp\/v2\/tags?post=355713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}